EU Blames South Korean Yards For Low Prices

Thursday, November 16, 2000
The European Union on Wednesday blamed low prices offered by South Korean shipyards for the depression in the world shipbuilding market and accused Korea of pricing ships at below cost. A report by the EU's executive Commission found the world shipbuilding market continued to face serious difficulties.

"Supply still outstrips demand and there are few indications that this situation may improve," the Commission said, adding that the depression in prices was "caused by low offer prices from South Korean yards."

Repeating charges it has leveled often in the past, the Commission said its detailed cost investigations "continue to indicate that Korean yards are still taking orders at prices which are not covering all costs".

South Korea is the biggest shipbuilder in the world. Its shipyards took more than 40 percent of all new orders in the first eight months of this year, compared with 25 percent for Japan, 16 percent for the EU plus Norway and 19 percent for the rest of the world, the Commission said.

Despite higher orders in the first eight months of this year due to favorable market conditions in liquid bulk shipping and to the development of very large container ships, ship prices had not recovered from the "massive drop" since 1997, it said.

There were however some signs of improvement compared with the low levels at the end of 1999, it said.

The report, due to be discussed by EU industry ministers on December 5, provides ammunition for European shipbuilders and some EU officials who have been strongly critical of Korean shipbuilding practices.

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

BAE Systems Awards Software Contract to SENER

The Spanish company SENER, Ingeniería y Sistemas S.A has closed a contract with U.K.-based BAE Systems PLC for the integration between FORAN CAD/CAM System and

New Research Vessel for University of New Hampshire

All American Marine, Inc. (AAM) has entered into a contract with the University of New Hampshire (UNH) for the design and construction of a new aluminum catamaran research vessel.

Self-lubricating Bearing Polymer: Safe, Easy to Machine

Many plastics and metallic alloys present machining challenges as some deform and are difficult to maintain exacting tolerances, while others require strict and

Finance

Japan Seeks Australian Submarine Contract

Japan will send a high-level delegation to Adelaide for talks on building Australia's next-generation fleet of submarines.   A former commander of the Japanese

Davao Sasa Port Modernization Project Attracts 6 Firms

Six local and foreign firms have expressed interest to construct a modern Davao Sasa Port, the Department of Transportation and Communications (DOTC), Philippines said.

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

 
 
Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1660 sec (6 req/sec)